AVANTOR INC (AVTR)
US05352A1007 - Common Stock
Taking everything into account, AVTR scores 4 out of 10 in our fundamental rating. AVTR was compared to 55 industry peers in the Life Sciences Tools & Services industry. While AVTR is still in line with the averages on profitability rating, there are concerns on its financial health. AVTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVTR was profitable.
In the past year AVTR had a positive cash flow from operations.
AVTR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AVTR had a positive operating cash flow.
1.2 Ratios
AVTR has a Return On Assets of 2.41%. This is in the better half of the industry: AVTR outperforms 70.91% of its industry peers.
AVTR has a Return On Equity of 5.58%. This is in the better half of the industry: AVTR outperforms 74.55% of its industry peers.
The Return On Invested Capital of AVTR (4.46%) is better than 70.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVTR is below the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROIC | 4.46% |
ROA(3y)3.68%
ROA(5y)1.63%
ROE(3y)10.62%
ROE(5y)4.04%
ROIC(3y)6.66%
ROIC(5y)6.37%
1.3 Margins
The Profit Margin of AVTR (4.54%) is better than 69.09% of its industry peers.
AVTR's Profit Margin has improved in the last couple of years.
AVTR has a better Operating Margin (9.24%) than 69.09% of its industry peers.
AVTR's Operating Margin has improved in the last couple of years.
AVTR has a worse Gross Margin (33.53%) than 67.27% of its industry peers.
In the last couple of years the Gross Margin of AVTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 4.54% | ||
| GM | 33.53% |
OM growth 3Y4.11%
OM growth 5Y8.45%
PM growth 3Y78.28%
PM growth 5YN/A
GM growth 3Y1.4%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVTR is destroying value.
AVTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AVTR has been increased compared to 5 years ago.
AVTR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.09 indicates that AVTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVTR has a Altman-Z score (2.09) which is comparable to the rest of the industry.
The Debt to FCF ratio of AVTR is 6.59, which is on the high side as it means it would take AVTR, 6.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AVTR (6.59) is comparable to the rest of the industry.
AVTR has a Debt/Equity ratio of 0.84. This is a neutral value indicating AVTR is somewhat dependend on debt financing.
The Debt to Equity ratio of AVTR (0.84) is worse than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.42
WACC10.59%
2.3 Liquidity
AVTR has a Current Ratio of 1.54. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AVTR (1.54) is worse than 74.55% of its industry peers.
AVTR has a Quick Ratio of 1.06. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
AVTR has a Quick ratio of 1.06. This is in the lower half of the industry: AVTR underperforms 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for AVTR have decreased strongly by -14.04% in the last year.
AVTR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
The Revenue has decreased by -3.12% in the past year.
The Revenue has been growing slightly by 3.51% on average over the past years.
EPS 1Y (TTM)-14.04%
EPS 3Y6.33%
EPS 5YN/A
EPS Q2Q%4%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y2.91%
Revenue growth 5Y3.51%
Sales Q2Q%-0.34%
3.2 Future
Based on estimates for the next years, AVTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-6.25%
EPS Next 2Y3.91%
EPS Next 3Y7.29%
EPS Next 5Y10.2%
Revenue Next Year-1.79%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.53%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.78, which indicates a rather expensive current valuation of AVTR.
Compared to the rest of the industry, the Price/Earnings ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 89.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. AVTR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.62, AVTR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AVTR is valued cheaper than 89.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVTR to the average of the S&P500 Index (23.82), we can say AVTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 89.09% of the companies listed in the same industry.
AVTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AVTR is cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 17.72 |
4.3 Compensation for Growth
The decent profitability rating of AVTR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.91%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
No dividends for AVTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVANTOR INC
NYSE:AVTR (11/21/2024, 8:13:45 PM)
After market: 20.36 0 (0%)20.36
+0.22 (+1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 17.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.24% | ||
| PM (TTM) | 4.54% | ||
| GM | 33.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.04%
EPS 3Y6.33%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y2.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y